It is more cost effective to have fewer regionals that are larger than it is to have several smaller ones. Management, training, and administrative costs are all less, plus they needs less pilots per airplane to operate effectively.

It is also more cost effective to have wholly owned regionals than it is to have private companies providing lift to the mainline carrier.

It is all about the dollars.

Having Envoy's 700's come to PSA will save $1.5million per month (according to management), and allows Envoy to take more 175's.